Real estate transfer tax

Real estate transfer tax advice on property, corporate and succession transactions.

Whether it is a property purchase, a company succession involving real estate, a transfer of shares in a property-holding company or the division of an estate: as soon as the allocation of a property changes, the question of real estate transfer tax arises.

The rules are complex in detail, and structuring errors can usually no longer be corrected once the contract has been concluded. We are therefore happy to support you by reviewing your plans at an early stage.

Real estate transfer tax is set independently by the German federal states and currently ranges from 3.5% to 6.5% of the purchase price or the tax base, depending on the state.

Where we support you

• Property transactions: We determine the tax base for real estate transfer tax, review applicable exemptions and support you in structuring purchase agreements from a tax perspective, for example in distinguishing between components of the property and movable inventory.
• Corporate transactions (M&A): In asset deals and share deals involving real estate, we build the real estate transfer tax review into the transaction structure from the outset instead of considering it only afterwards. This is because real estate transfer tax can arise even without a direct property purchase if the shareholdings in a property-holding company change significantly. Transfers of 90% of the shares within ten years can already trigger real estate transfer tax. This also applies if shares are transferred only indirectly, for example at holding company level or within a group of companies. We are happy to review shareholding structures at an early stage to determine whether a transaction triggers real estate transfer tax and whether an alternative structure can achieve an optimisation.
• Inheritances, gifts and divisions of estates: Separate exemptions apply to acquisitions by inheritance or gift between close relatives. When a community of heirs holding several properties with different legal backgrounds is dissolved, the individual allocation is usually decisive. We review for you whether real estate transfer tax is payable.
• Valuation where there is no purchase price: If there is no purchase price, for example in certain reorganisations or company law transactions, real estate transfer tax is calculated on the basis of the so-called property value (Grundbesitzwert, also known as Bedarfswert). We calculate this value or check an existing valuation for plausibility.
• Procedures and notification obligations: We file the required notifications with the tax office and support you if a real estate transfer tax assessment notice is to be challenged. Late or incomplete notifications can result in real estate transfer tax actually being charged twice.

We advise private individuals on property acquisitions as well as companies on company law transactions, family offices on the succession of assets involving real estate, and communities of heirs on the division of several properties.

Early coordination is particularly worthwhile for more complex structures, several parties involved, different acquisition transactions and cross-border aspects.